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Bureau of Mines Information Circular/1986 




Magnesium Availability — Market 
Economy Countries 

A Minerals Availability Appraisal 

By D. R. Wilburn 




UNITED STATES DEPARTMENT OF THE INTERIOR 



Information Circular 9112 

l\ 

Magnesium Availability — Market 
Economy Countries 

A Minerals Availability Appraisal 

By D. R. Wilburn 




UNITED STATES DEPARTMENT OF THE INTERIOR 
Donald Paul Hodel, Secretary 

BUREAU OF MINES 
Robert C. Horton, Director 



As the Nation's principal conservation agency, the Department of the Interior 
has responsibility for most of our nationally owned public lands and natural 
resources. This includes fostering the wisest use of our land and water 
resources, protecting our fish and wildlife, preserving the environment and 
cultural values of our national parks and historical places, and providing for 
the enjoyment of life through outdoor recreation. The Department assesses our 
energy and mineral resources and works to assure that their development is in 
the best interests of all our people. The Department also has a major 
responsibility for American Indian reservation communities and for people 
who live in island territories under U.S. administration. 



\& 



>* ^ 



f'J 



t 



/ 



Library of Congress Cataloging-in-Publication Data 



Wilburn, D. R. (David R.) 

Magnesium availability — market economy countries. 



(Information circular; 9112) 

Bibliography: p. 23 

Supt. of Docs, no.: I 28.27:9112 



1. Magnesium industry and trade. I. Title. II. Series: Information circular (United 
States Bureau of Mines); 9112. 



TN295.U4 [HD9539.M25] 622 s [553.4'9291 86-600289 



Ill 



PREFACE 



The Bureau of Mines is assessing the worldwide availability of selected minerals 
of economic significance, most of which are also critical minerals. The Bureau 
identifies, collects, compiles, and evaluates information on producing, developing, and 
explored deposits, and mineral processing plants worldwide. Objectives are to classify 
both domestic and foreign resources, to identify by cost evaluation those demonstrated 
resources that are reserves, and to prepare analyses of mineral availability. 

This report is one of a continuing series of reports that analyze the availability of 
minerals from domestic and foreign sources. Questions about, or comment on, these 
reports should be addressed to Chief, Division of Minerals Availability, Bureau of 
Mines, 2401 E St., NW„ Washington, DC 20241. 



CONTENTS 



Page 

Preface iii 

Abstract 1 

Introduction 2 

Commodity overview 2 

Background 2 

Use 2 

Marketing and pricing structure 4 

World magnesium production, consumption, and 

trade 4 

Identification and selection of deposits 7 

Methodology 9 

Geology 10 

Dolomite 10 

Magnesite and brucite 10 

Seawater 10 

Lake brines 10 

Well brines 11 

Magnesium resources 11 

Extraction and processing technology 13 



Page 

Seawater and brines 13 

Extraction 13 

Processing 13 

Magnesite, brucite, dolomite, and olivine 13 

Extraction 13 

Nonmetallic magnesia processing 13 

Magnesium metal processing 14 

Electrolytic processing 14 

Thermic processing 14 

Production costs 14 

Capital investments 15 

Operating costs 15 

Magnesium availability 16 

Total availability 17 

Annual availability 20 

Factors affecting availability 21 

Conclusions 22 

References 23 

Appendix. — Areas and source materials excluded 

from this study 24 



ILLUSTRATIONS 

Page 

1. Domestic magnesium metal end use pattern, 1984 3 

2. Domestic magnesium compound consumption pattern, 1984 3 

3. Minerals Availability program deposit evaluation procedure 9 

4. Mineral resource classification categories 11 

5. Total potential magnesium metal availability from evaluated MEC properties 18 

6. Total potential deadburned and caustic calcined MgO availability from evaluated MEC properties 19 

7. Total potential domestic availability of deadburned MgO from evaluated properties 20 

8. Annual availability of magnesium metal, deadburned MgO, and caustic calcined MgO at various prices ... 21 

9. Energy costs as a percentage of total operating costs 22 



TABLES 

Page 

1. Industrial uses of magnesium compounds 3 

2. Market prices for selected magnesium products, January 1982 to January 1985 . 4 

3. Production statistics for metallic and nonmetallic magnesium products, 1970-84 5 

4. Principal magnesium producing, exporting, and importing countries 6 

5. U.S. import duties for selected magnesium products 7 

6. Deposits selected for evaluation 8 

7. Demonstrated MEC magnesium resources, January 1985 12 

8. Production costs for selected producing operations from various source materials 16 

9. Operating cost breakdown for producing magnesium operations 16 

10. Total production cost summary for selected magnesium products from producing operations and various 

source materials 16 

11. Byproduct commodity prices, January 1984 16 

12. Availability of magnesium metal and MgO compounds from selected MEC properties including a 15-pct 

DCFROR at selected cost ranges 18 

13. Summary of domestic and foreign magnesium demand forecasts 21 

14. Energy requirements for magnesium metal production 21 



UNIT OF MEASURE ABBREVIATIONS USED IN THIS REPORT 


op 


degree Fahrenheit 


MMst 


million short tons 


ft 


foot 


pet 


percent 


gal/min 


gallon per minute 


St 


short ton 


in 


inch 


st/yr 


short ton per year 


in/yr 


inch per year 


wt pet 


weight percent 


kW-h/lb 


kilowatt hour per pound 


wtd av 


weighted average 


lb 


pound 


yr 


year 



MAGNESIUM AVAILABILITY— MARKET ECONOMY COUNTRIES 
A Minerals Availability Appraisal 

By D. R. Wilburn 1 



ABSTRACT 



The Bureau of Mines investigated the potential availability of magnesium from 45 
properties in market economy countries (MEC's). The 38 significant deposits evaluated 
have demonstrated resources of approximately 29 billion short tons (st) magnesium- 
bearing material containing 416 million short tons (MMst) magnesium oxide (MgO). 
Using data it gathered, the Bureau determined the magnesium production potential 
for each property including a 15-pct rate of return on invested capital. 

Total and annual availability assessments for the next 30 yr were completed for 
magnesium (Mg) metal, deadburned MgO, and caustic calcined MgO. At a January 
1984 market price of $1.34/lb Mg metal, the properties evaluated could economically 
produce an estimated 13 MMst Mg metal. At a market price of $400/st nonmetal 
magnesium product, these properties could economically produce 109 MMst 
deadburned MgO and 43 MMst caustic MgO. These properties could produce 
approximately 301,000 st Mg metal, 3.0 MMst deadburned MgO, and 430,000 st 
caustic MgO annually at current full production levels and 1984 market prices until at 
least the year 2000. Total 1984 MEC production assessed in this study was 153,000 st 
Mg metal and 4.3 MMst nonmetallic MgO products. 



'Physical scientist, Minerals Availability Field Office, Bureau of Mines, Denver, CO. 



INTRODUCTION 



Magnesium is considered by the Bureau of Mines to 
be a critical commodity for the United States because of its 
extensive use in a variety of industrial and military 
applications. Its low density has encouraged its use in 
structural applications where it competes with aluminum. 
Refractory applications, particularly by the iron and steel 
industry, represent the largest tonnage use of magnesium 
in compounds. Magnesium as a mineral commodity is 
marketed in manj r product forms; availability estimates 
in this study are restricted to magnesium metal and 
nonmetallic magnesium in the forms of deadburned 
(refractory grade) and caustic calcined (chemical-grade) 
magnesia (MgO). 

Magnesium can be recovered from ores, seawater, or 
naturally occurring brines that are found in numerous 
countries. The high energy cost associated with magne- 
sium recovery has limited its past availability and 
encouraged the magnesium industry to increase research 
efforts to reduce processing costs. Recent reductions in 
energy-related processing costs are discussed in this 
study. 

This study presents an analysis of the resources, 
engineering, economics, and other factors that influence 
the availability of magnesium. Because of the number and 
diversity of occurrences and the lack of reliable data in 
some countries, only the most significant potential sources 
in market economy countries (MEC's) 2 were evaluated; 



other areas with future potential are discussed in the 
appendix. 

The resource and cost data presented in this report 
can be used in the development or modification of a 
domestic minerals policy and can be of direct benefit to 
programs concerned with mineral stockpile assessment, 
minerals exploration, extraction technology research, tax 
restructuring, substitute mineral studies, and land uti- 
lization. No comprehensive world magnesium resource 
data have been reported since 1960. This study updates 
past work (4f with more recent data and summarizes 
available industry data on magnesium and magnesium 
compounds as of January 1984. Current and potential 
availability data for magnesium are presented with 
explanatory text in a series of curves that relate resources 
to total production cost. 

Domestic property information was provided by 
personnel at Bureau field operations centers, foreign data 
collection was performed under contract. Personnel of the 
Bureau's Minerals Availability Field Office evaluated the 
data, aggregated it, and performed the economic evalua- 
tion analyses. Technical assistance was provided by Jack 
T. Elmer, Manager — Magnesia Operations, National 
Refractories and Minerals Corp., Moss Landing, CA. 
Selected production data were provided by Deborah A. 
Kramer, Bureau commodity specialist, Washington, DC. 



COMMODITY OVERVIEW 



BACKGROUND 

Magnesium, the eighth most abundant element in the 
earth's crust, is recovered from numerous sources in both 
metallic and nonmetallic forms. Magnesium metal or 
compounds are extracted from such diverse sources as 
magnesium-bearing ores, seawater, and well and lake 
brines. The most common ores in which magnesium occurs 
contain magnesite, brucite, dolomite, and olivine. Use of 
magnesium ores and compounds began in the early 18th 
century during the early development of the ferrous 
metals and chemicals industries in Europe. 

By the early 1940's, mining and processing of 
domestic magnesium ores had been expanded to supply 
material for the production of refractories, chemicals, and 
magnesium metal. Development of technology to produce 
magnesium compounds other than magnesia progressed 
slowly until the outbreak of World War II, when demand 
increased rapidly. Technology to recover magnesium from 
brines, seawater, and dolomite had been developed after 
World War I. Consequently, when imports were inter- 
rupted by the beginning of World War II, the domestic 
magnesium industry was able to meet the demands for 
magnesium products. 



2 Market economy countries, as defined by the Bureau of Mines, include 
all countries except the centrally planned economy countries (CPEC'sl of 
Albania, Bulgaria, China, Cuba, Czechoslovakia, the German Democratic 
Republic, Hungary, Kampuchea, North Korea, Laos, Mongolia, Poland, 
Romania, the U.S.S.R., and Vietnam. 



Immediately following World War II, production of 
magnesium products decreased significantly in MEC's. 
The Germans, having made many contributions to 
magnesium's early development, became dependent upon 
imports after the war, and neither Germany has produced 
significant magnesium since that time. High electrical 
costs and large postwar inventories resulted in the 
reduction of Mg production in France and the United 
Kingdom and increased import reliance. Dow Chemical 
Co. plants at Freeport, TX, were the only domestic Mg 
metal producers to survive the war, although production 
of magnesium compounds continued at foreign locations. 
Technological advances have resulted in increased de- 
mand for metal and nonmetal magnesium products in 
recent years. 



USE 

In its pure state, magnesium is the lightest of the 
structural metals, with a density approximately 63 pet 
that of aluminum. This low density is a key factor in its 
use as a structural metal where weight is an important 
consideration; however, given the low mechanical 
strength of pure magnesium, it is commonly alloyed with 
other materials. Magnesium is used in structural alumi- 

3 Italic numbers in parentheses refer to items in the list of references 
preceding the appendix. 



num-based alloys, in castings and wrought products 
(machinery, tools, and other consumer products), as a 
reducing agent, for cathodic corrosion protection, and in 
the manufacture of nodular cast iron. Other applications 
include chemicals, alloys other than aluminum, and 
graphic arts. Figure 1 illustrates the 1984 domestic end 
use pattern of Mg metal. 

Magnesium compounds are used in a wide variety of 
industries, as illustrated in table 1. The most important 
magnesium compound is magnesium oxide (MgO), which 
is commonly referred to as magnesia. Deadburned MgO, 
used in the manufacture of metallurgical furnace refrac- 
tory products, represents the largest tonnage use of 
magnesium in compounds. Other forms of recoverable 
magnesium include magnesium hydroxide [Mg(OH) 2 ]; 
caustic-calcined and specified (United States Pharmaco- 
poeia [USP] and technical-grade) magnesias; magnesium 
sulfate (MgS0 4 ); and precipitated magnesium carbonate 
(MgC0 3 «nH 2 0). Deadburned MgO is a granular MgO 
product obtained by calcining Mg(OH) 2 above 2,640° F to 
form a high-grade refractory product. Caustic calcined 
MgO is a reactive MgO product formed at calcination 
temperatures less than 1,650° F and can be used in lower 
grade refractories and in numerous other chemical and 
industrial uses. The domestic consumption pattern of 
magnesium compounds in 1984 is illustrated in figure 2. 

The iron and steel industry is the largest consumer of 
magnesium products; approximately 11 lb of refractory 
MgO is used for each short ton of steel ingot produced. 
MgO is also used as a stabilizing or vulcanizing agent in 
rubber and for other chemical products. The high 
electrical resistance of fused and boron- free MgO or 
periclase makes these products useful as insulators in 
electric furnaces and appliances. Magnesia serves as an 



wrought products 
16 pet 




Reducing 
agents 

Cathodic 

protection 

5 pet 



■Manufacture of 
nodular cast iron 
3 pet 



absorbent and catalyst in carbonate leach circuits for the 
recovery of uranium oxide (U 3 8 ) from uranium ores. An 
essential element in plant and animal metabolism, 
magnesium is added to fertilizers and animal feed in the 
form of caustic calcined MgO (11). MgS0 4 is used in 
pharmaceuticals, dyes, sizing, paper manufacture, fertiliz- 
ers, and explosives. MgC0 3 is used as a thermal insulator 
for boilers and pipes, in table salt to prevent caking, and 
in the preparation of pharmaceuticals and cosmetics. 
MgCl 2 is used in the production of Mg metal, industrial 
chemicals, and cement. 

There is a sharp distinction between markets for 
natural calcined magnesia and products of seawater or 
brine operations. Caustic calcined natural magnesites are 

TABLE 1. — Industrial uses of magnesium compounds {,11) 



Compound and grade 



Use 



MgO: 

Deadburned (refractory grades) 

Caustic calcined 



USP and technical grades 



Precipitated magnesium carbonate 
(MgC0 3 ) 



Magnesium hydroxide [Mg(OH 2 )] 
Magnesium chloride (MgCI 2 ) 



Basic refractories (bricks, furnace 

linings, etc.). 
Cement, rayon, fertilizer, insulation, 

magnesium metal, rubber, fluxes, 

refractories, chemical processing 

and manufacturing, and uranium 

and paper processing. 
Rayon, rubber, refractories, 

medicines, uranium processing, 

fertilizer, electrical insulation, 

neoprene compounds and other 

chemicals, cement. 
Insulation, rubber, pigments and 

paints, glass, ink, ceramics, 

chemicals, fertilizer. 
Sugar refining, MgO, and 

pharmaceuticals. 
Mg metal, cement, ceramics, 

textiles, paper, chemicals. 




(Total primary U.S. consumption, 
1984 : 90,000 st) 



Other 
1.5 pet 

(Total U.S. consumption, 1984 
779,000 st contained MgO) 



FIGURE 1.— Domestic magnesium metal end use pattern, 
1984. 



FIGURE 2. — Domestic magnesium compound consumption 
pattern, 1984 



generally used for agricultural or construction markets, 
while the higher purity seawater and/or brine (synthetic) 
product tends to be used for refractory or industrial uses 
(5). Synthetic magnesite, however, requires up to four 
times more energy to produce than natural magnesite. 
Both natural and synthetic MgO products are used in the 
paper industry and in some agricultural markets. 



MARKETING AND PRICING STRUCTURE 

Magnesium metal is marketed in both wrought metal 
and cast metal forms, and market price varies with end 
product and alloy type. American Society for Testing and 
Materials (ASTM) standard designations have been 
adopted for 26 magnesium alloys (11). Magnesium alloys 
and aluminum alloys requiring magnesium (used in 
special applications) are custom manufactured and priced 
accordingly. Prices vary with specifications, including the 
amount of contained magnesium and allowable levels of 
impurities. 

Standards for refractories containing MgO are set by 
the consumer to meet various furnace conditions. Repre- 
sentative prices for Mg metal and selected magnesium 
compounds for the period 1982-1985 are given in table 2. 

Following the 1973 oil crisis, the energy intensive 
magnesium industry entered a period of rapidly increas- 
ing power costs. Magnesium metal prices had been stable 
at $0.35/lb to $0.38/lb for the period 1963-73, but they 
more than doubled to $0.82/lb by 1975. During the period 
1975-83, the Mg metal price rose at an average annual 
rate of 6 pet (11). Expanded markets during the 
mid-1970's caused the magnesium industry to increase 
plant capacity to the point where present capacity exceeds 
demand. While the rate of growth in demand for 
magnesium products has declined since 1980, metal 
production capacity will most likely exceed demand for 
several years to come. As a result, some properties may 
operate below full capacity levels. 

The magnesium compounds industry appears to be 
stabilizing after a period of gradually increasing consump- 
tion. Since 1980, demand has showed only a slight 
increase and prices for magnesium products have re- 
mained stable. Plants are either operating at reduced 
rates or are gradually resuming full production rates. 



Exploration or development work, halted for the past 
several years by the sluggish economy, is gradually being 
resumed at some locations. 

The concern of major refractory producers to reduce 
energy consumption could lead to increased consumption 
of natural magnesites at the expense of the energy- 
intensive synthetic magnesites. Such a change would 
require that comparable, high-quality deadburned 
magnesite be obtained in large quantities as it could from 
seawater and brine sources. Since known natural magne- 
site deposits meeting these specifications are relatively 
rare, it is likely that current consumption trends will 
continue in the near future. 

WORLD MAGNESIUM PRODUCTION, 
CONSUMPTION, AND TRADE 

The United States leads the world in producing 
refined Mg metal, but it is a relatively minor producer of 
raw materials for magnesium compound production. 
Production figures for Mg metal and magnesite for the 
period 1970-84 are reported in table 3. In 1970, world 
primary Mg metal production was 242,000 st. By 1980, 
production had climbed to 348,000 st. Primary Mg 
production in 1984 was estimated to be 358,000 st. Since 
the 1960's, the United States has assumed an increasingly 
dominant role in primary Mg metal production. By 1980, 
the United States produced approximately 49 pet of the 
world's primary Mg metal. Production from CPEC's 
including China and the U.S.S.R., has remained stable at 
approximately 26 pet of world primary Mg metal. 

The world magnesite production was 7,521,000 st in 
1960, 9,743,000 st in 1970, and 13,293,000 st in 1980. 
Current world magnesite production (1984) was 
12,249,000 st. Domestic magnesite production has in- 
creased significantly from the 7 pet of world production 
reported in 1960, but falls short of the 55 pet level of world 
magnesite production achieved by the CPEC's (Czechoslo- 
vakia, Poland, the U.S.S.R., China, and North Korea) for 
1980. Production from MEC's in 1980 was 45 pet of world 
production. Allegations that China and North Koreallave 
been dumping magnesite on world markets are being 
investigated, and an antidumping duty has been levied by 
a European Economic Community (EEC) commission on 
magnesium products from these countries. 



TABLE 2.— Market prices for selected magnesium products, January 1982 to January 1985 (2) 

(Dollars per short ton, except as indicated) 



Product 



Description 



Price (January') 



1982 


1983 


1984 


1985 


$1.16 
1.14 


$1.34 
1.32 


2 $1 .34 
1.32 


$1.34 
1.32 


285 
296 
392 
409 


315 
350 
392 
409 


2 315 
350 

2 392 
409 


330 
365 
392 
409 


200 

230 

1,080 


222 

255 

1,560 


222 

255 

1,560 


232 

265 

1,560 


1,040 

1,080 

NA 


1,460 
1,480 
1,660 


1,460 
1,480 
1,660 


1,460 
1,480 
1,660 



10,000-lb lots, f.o.b. Freeport, TX. 
. . do 



Mg metal, $/lb: 

Ingots 

Diecasting alloys 

MgO, synthetic: 

Technical, chemical (92-95 pet MgO) Bulk lots, works 

Bagged, works 

Deadburned (94-96 pet MgO) Bulk lots, works 

Bagged, works 

MgO, natural: 

Technical, heavy (85 pet MgO) 150-mesh, bulk lots f.o.b. Nevada . 

Technical, heavy (90 pet MgO) 325-mesh, bulk lots, f.o.b. Nevada 

Mg (OH) 2 National Formula, powdered 



MgC0 3 : 

Technical, light Bagged, works, car or truck lots, freight equalized 

USP, light Bagged, works, truck lot, freight equalized 

USP, heavy do 



NA Not available. 

1 price quoted from first week of January for each year reported. 

2 Price used in this study for economic evaluation. 



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It should be noted, however, that much of the 
domestic magnesium compound production is derived 
from sources other than magnesite. At present, magnesite 
makes up only 44 pet of the total domestic magnesium 
resources, a percentage much smaller than many other 
producing countries. 

The recent recession in the Western World, particu- 
larly in the domestic iron and steel industry, has affected 
the magnesium industry as well. World production of Mg 
metal has increased a slight 2.6 pet between 1980 and 
1984 while domestic production has decreased 5.9 pet; 
world magnesite production has decreased 7.3 pet during 
this period, while U.S. production has decreased even 
more (11). Similar trends can be seen for other industri- 
alized MEC's. The production picture for CPEC's is 
healthy. The iron and steel industries in these countries 
are still developing, and the closely allied magnesium 
industry has either maintained production or increased 
production capacity. The CPEC share of world markets in 
1984 was 28 pet for Mg metal and 63 pet for magnesite. 

Worldwide consumption data by end use are not 
available. However, it is estimated that approximately 
268,000 st primary Mg metal, 25,000 st secondary Mg 
metal, and 5,562,000 st nonmetal magnesium compounds 



were consumed in 1983 (11). Consumption patterns for 
MgO vary widely from country to country. In the United 
States, approximately 60 pet of total consumption is for 
industrial or chemical uses, while in the United Kingdom 
the bulk of consumption is for agricultural use; in Austria 
construction use predominates; in Norway paper 
manufacturing is the dominant consumer of MgO (5). 

Approximately 20 pet of the domestic Mg metal 
consumption in 1984 was recovered from scrap. There is 
no significant recycling of nonmetal magnesium com- 
pounds. 

Magnesite, magnesia, and magnesium products are 
traded extensively internationally. In an average year 
over 2 MMst MgO is shipped across international 
boundaries. As a result of the wide variety of products on 
the market, a number of countries are both large 
exporters and importers; among them are Austria, Italy, 
the United Kingdom, Japan, and the United States. 
Principal producers, exporters, and importers of magne- 
sium products are listed in table 4. 

In order to protect domestic producers, tariffs on most 
magnesium products have been imposed by the United 
States. Tariff rates for Most Favored Nation (MFN) 
countries are gradually being reduced over a 7-yr period 






TABLE 4. — Principal magnesium producing, exporting, and importing countries (22) 

(Short tons) 

Production Exports Imports 

Country' 

1980 1981" 1982 e 1980 1981 1980 1981 

Brazil: 

Crude magnesite 788,000 618,000 505,000 

Beneficiated magnesite ". 31 6,000 286,000 226,000 89,000 1 06,000 400 400 

Canada: 

Mg metal (primary) 10,000 9,000 9,000 5,000 6,000 4,000 500 

Magnesite-dolomite-brucite 69,000 76,000 75,000 

France: Mg metal 9,000 7,000 10,000 4,000 5,000 4,000 4,000 

Gf66C6! 

Crude magnesite 1 ,287,000 910,000 882,000 

Deadburned MgO 439,000 303,000 298,000 467,000 310,000 1,000 300 

Caustic calcined MgO 126,000 90,000 88.000 

India: 

Mg metal 500 400 

Magnesite 419,000 510,000 449,000 5,000 2,000 2,000 2,000 

Ireland: Magnesium compounds NA NA NA 81 ,000 85,000 35,000 22,000 

Italy: 

Mg metal (primary) 9,000 9,000 8,000 5,000 8,000 5,000 3,000 

Magnesite 133,000 100,000 120,000 79,000 

Japan: 

Mg metal (primary) 10,000 6,000 6,000 100 80 14,000 12,000 

Mg metal (secondary) 26,000 31 ,000 24,000 

Magnesite 125,000 98,000 199,000 220,000 

Mexico: 

Magnesite 18,000 13,000 25,000 100 40 90 220 

MgO products 78,000 76,000 71,000 NA NA 

Netherlands: 

Mg metal 5,000 5,000 6,000 6,000 

Magnesite 4,000 2,000 17,000 20,000 

Oxides and hydroxides 300 700 900 900 

Other 30,000 29,000 61 ,000 44,000 

Norway: 

Mg metal 44,000 47,000 36,000 42,000 44,000 400 400 

Magnesite NA NA NA 17,000 19,000 5,000 4,000 

Spain: 

Mg metal 1 ,000 1 ,000 

Caustic calcined MgO 170,000 149,000 170,000 NA 102,000 NA 35,000 

Crude magnesite 557,000 525,000 588,000 

Tunisia: Magnesite NA NA NA NA NA 70 100 

Turkey: Crude magnesite 910,000 864,000 998,000 NA NA NA NA 

United Kingdom: 

Mg metal (secondary) 3,000 2,000 2,000 1 ,000 800 5,000 5,000 

Magnesium compounds NA NA NA 80,000 72,000 94,000 96,000 

United States: 

Mg metal (primary) 169,000 154,000 102,000 57,000 35,000 4,000 7,000 

Mg metal (secondary) 40,000 46,000 43,000 

Caustic and specified MgO 157,000 160,000 148,000 52,000 37,000 12,000 12,000 

Refractory MgO 731 ,000 616,000 453,000 56.000 21 ,000 73,000 77,000 

Deadburned dolomite 494,000 435,000 337,000 NA NA NA NA 

"Estimated "Preliminary NA Not available. 

'Countries that import or export magnesium products but do not produce significant amounts of magnesium or magnesium products have not been included here. 



ending in 1987. Non-Most Favored Nation (NMFN) tariffs 
remain unchanged. Tariffs for selected products are 
presented in table 5. 

Five of the 14 foreign nations included in this 
evaluation qualify for the U.S. Generalized System of 
Preference (GSP), which allows duty-free entry of imports 
into the' United States. The GSP was established as a 
temporary 10-yr program under the Trade Act of 1974, 



then was renewed until 1993 under the Trade and Tariff 
Act of 1985. 

Depletion allowances for selected magnesium ores are 
as follows: 14 pet for dolomite and magnesium carbonate 
(domestic and foreign); 5 pet for magnesium chloride 
(domestic and foreign); 10 pet for brucite (domestic and 
foreign); and 22 pet (domestic) and 14 pet (foreign) for 
olivine. 



TABLE 5. — U.S. import duties for selected magnesium products (11) 



Tariff item' 



MFN 



NMFN 



Jan. 1, 1984 



Jan. 1, 1987 



Jan. 1, 1984 



Crude magnesite $0.98/st 

Caustic calcined MgO $2.10/st 

Deadburned MgO (-4 pet lime) $0.17/lb 

Deadburned MgO ( + 4 pet lime) 6.0 pet ad valorem 

Unwrought Mg metal 13.5 pet ad valorem 

Unwrought Mg alloys 6.8 pet ad valorem 

Wrought Mg metal $0.052/lb on Mg content + 

2.9 pet ad valorem. 



Free 

$2.10/st 

$0.16/lb 

6.0 pet ad valorem 

8.0 pet ad valorem 

6.5 pet ad valorem 

$0.045/lb on Mg content + 
2.5 pet ad valorem. 



$10.50/st. 
$21 .00/st. 
$0.75/lb. 

30.0 pet ad valorem. 
100 pet ad valorem. 
60.5 pet ad valorem. 
$0.40/lb on Mg content + 20 
pet ad valorem. 



'5 of the 14 foreign nations included in this evaluation qualify for the U.S. Generalized System of Preference, which allows duty-free entry of imports into the 
United States. This system is in effect until 1993 under the Trade and Tariff Act of 1985. 



IDENTIFICATION AND SELECTION OF DEPOSITS 



Magnesium properties considered in this study are 
limited to known deposits that have significant demons- 
trated resources or to those properties that are either 
producing or that have produced in the recent past. 
Cumulative magnesium resources from seawater, brines, 
or dolomite are considered inexhaustible at current 
production rates; economic evaluation of total resource 
potential is beyond the scope of this study. Of the 45 
properties investigated during this study, 38 have been 
economically evaluated. Properties were selected by the 
Bureau with the aim of including at least 85 pet of current 



production from MEC's. Seven MEC properties and all 
CPEC properties were not evaluated since data were 
either unavailable or unreliable. Table 6 lists the deposits 
included in this study. 

Magnesium production from olivine is minor and 
limited to specialized products, therefore it has not been 
included in this study. Resource potential from olivine 
sources is discussed in the appendix. Brucite deposits have 
been included with magnesite deposits because of similar- 
ity of occurrence, use, and processing technology. 



TABLE 6. — Deposits selected for evaluation 



Deposit 



Ownership 



Status 1 



Mining 2 
type 



Process 3 



Products 4 



Brazil: Magnesita Magnesita S.A. 



Canada: 

Haley Chromasco Ltd 

Mount Brussilof Baymag Mines Ltd 

Timmins Canadian Magnesite Mines Ltd. 

Gr©6c©* 

Fimisco FIMISCO 

Larco Larco S.A 



India: 



Almora Almora Magnesite S.A. 

Tamilnadu TamilNadu Magnesite 5 

Burn Standard Burn Standard Co. 5 . . 

Dalmia Dalmia Cement Co. 



Ireland: 

Drogheda Premier Periclase Ltd. 

Quigley Quigley Magnesite Co. 

Italy: Cogema COGEMA 

Japan: 

Ube 

Onahama 

Minamata 



Ube Industries Ltd 

Asahi Chemical Industries 
. . do 



Mexico: 

Quimica del Rey 
Quimica del Mar 



Industries Penoles S.A. de C.V. 
. . do 



Netherlands: Veendam 
Norway: Norsk Hydro . 



Billiton International Metals B.V. 



Norsk Hydro A.S. 



Spain: Zubiri Magnesitas Navarras S.A. 



Tunisia: Zarzis 



Government of Tunisia 



Turkey: 

Comag Comag 

Kumas Kumas 

Sumerbank Sumerbank Genel Mudurlugu 

United Kingdom: Hartlepool Steetley Refractories Ltd. 



United States: 

California: Moss Landing National Refractories and Minerals Corp 

Delaware: Barcroft Barcroft Co 

Florida: Basic Magnesia Combustion Engineering 

Michigan: 

Ludington-Harbison Dow Chemical, USA, and Harbison-Walker 

Refractories. 

Midland Magnesia Dow Chemical, USA, and Martin Marietta Basic 

Products. 

M-M Manistee Martin Marietta Basic Products 

Morton Chemical Morton Chemical Corp 

Nevada: Basic, Inc Combustion Engineering 

Texas: Dow Freeport Dow Chemical, USA 

Utah: Amax G.S.L Amax Specialty Metals 

Washington: 

Northwest Alloys Northwest Alloys Inc 

Stevens County Deposits Harbison-Walker Inc 



W 
W 



DB.LB.MT 



DB.CC 



S 
S 
S 


PI 

LB 
DB 


MG 
CC 
DB 


S 

s 


DB 
DB 


DB 
DB 


s 
s 
s 
s 


DB.LB 
DB.LB 
DB.LB 
DB 


DB.CC 
DB.CC 
DB.CC 
DB 


sw 
sw.s 


DB 
DB 


DB 
DB 


sw 


DB 


DB 


sw 
sw 
sw 


DB.LB.PI 

DB.LB 

DB 


DB.CC 
DB.CC 
DB 


S.B 

sw 


DB.LB 
DB 


DB.CC 
DB 


SB 


DB 


DB 


SW.B.S 


NH 


MG 


S 


DB.LB 


DB.CC 


B 


DB 


DB 


S 
S 
S 


LB 
DB 
DB 


CC 
DB 
DB 


sw,s 


LB.DB 


CC.DB 


sw.s 

sw 

sw,s 


DB 
HM 
DB 


DB 
DB 
DB 



DB 
DB 



DB 
DB 



p 


W 


DB 


DB 


p 


W 


DB 


DB 


p 


s 


DB 


DB 


p 


sw,s 


DO 


MG 


p 


B 


AM 


MG 


p 


s 


MT 


MG 


N 


s 


DB 


DB 


oces 


s; LB = lightburning process; MT = 


= Magnatherm 



1 N = not producing as of January 1984; P = producing as of January 1984. 
2 B = sea or lake brines; S = surface; SW = seawater; W = brine wells. 

3 AM = Amax process; DB = deadburning process; DO = Dow process; HM = hydrometallurgical process; LB 
process; NH = Norsk Hydro process; PI = Pidgeon process. 
4 CC = caustic calcined MgO; DB = deadburned MgO; MG = Mg metal. 

This study assumes recovery of principal products only — other products may be recovered in limited quantities 
Government owned. 



METHODOLOGY 



Figure 3 is a flowsheet of the Bureau's Minerals 
Availability program (MAP) evaluation process, from 
deposit identification to the development of availability 
curves. The flowsheet shows the various evaluation stages 
used in* this study to assess the availability of magnesium 
from individual domestic and foreign properties. 

After a deposit was selected for analysis, a compre- 
hensive evaluation of the property was performed. 
Production and cost data for domestic properties were 
estimated by personnel at the Minerals Availability Field 
Office (MAFO) in Denver, CO, and the Bureau's field 
operations centers in Denver, CO, and Spokane, WA. 
Foreign data were collected by Raymond Kaiser En- 
gineers Inc. of Oakland, CA, under contract JO225016 
U9). 

Design capacities were used for producing properties. 
For deposits not currently in production, mining, concen- 
trating, smelting, refining, and transportation methods 
were chosen based on applicable engineering principles, 
available deposit data, and current technology. Where 
possible, actual company cost data were used. In other 
cases, capital and operating costs were estimated from 
various sources. A cost estimating system (CES) de- 
veloped for the Bureau (3) was used for selected domestic 
deposits. Use of this costing system produces estimates 
that historically have fallen within 25 pet of actual costs. 



Capital expenditures were estimated for exploration, 
development, and mine and mill plant and equipment 
which include costs for mobile and stationary equipment; 
construction; engineering; support facilities and utilities 
(infrastructure); and working capital. Infrastructure 
includes all necessary costs for access roads, water 
facilities, power supply, port facilities, and personnel 
accommodations. Working capital is a revolving cash fund 
for operating expenses such as labor, supplies, taxes, and 
insurance. A working capital based on three months or 90 
days of operating cost was used in evaluations. 

All capital investments incurred prior to 1970 (15 yr 
before the study date of January 1984) were assumed to be 
fully depreciated or written off. Capital costs incurred 
after 1969 were reported in dollar values of the year in 
which they occurred; however, these costs were adjusted to 
reflect the remaining book value of the investment as of 
January 1984. All capital investments subsequent to 
January 1984 were reported in constant January 1984 
dollars. 

Mine and mill operating costs were developed for each 
deposit. The total operating cost is the sum of direct and 
indirect costs. Direct operating costs include production 
and maintenance labor, materials, payroll overhead, and 
utilities. Indirect operating costs include administrative 
costs, facilities' maintenance and supplies, and research 



Identification 

and 

selection 

of deposits 



Tonnage 

and 

grade 

determination 



Engineering 

and 

cost 

evaluation 



Deposit 

report 

preparation 



I 

Mineral I 

Industries ' 

Location I 

System I 

(MILS) | 

data • 



MAP 

computer 

data 

base 



Taxes, 
royalties, 

cost 

indexes, 

prices, etc 



MAP 

permanent 

deposit 

files 



Data 
selection 

and 
validation 



Variable 

and 

parameter 

adjustments 



Economic 
analysis 



Data 



Availability 
curves 



Analytical 
reports 



Sensitivity 
analysis 



u 



Data 



Availability 
curves 



Analytical 
reports 



i_r 



FIGURE 3.— Minerals Availability program (MAP) deposit evaluation procedure. 



10 



and development. Costs not considered as operating costs 
but used in the analyses include transportation costs and 
fixed charges, including taxes, insurance, depreciation, 
deferred expenses, and royalties. 

After capital and operating costs were determined, 
data were entered into the Bureau's supply analysis model 
(SAM) (6). The Bureau developed SAM to perform an 
economic analysis that either presents the results as the 
primary commodity price (average total cost of produc- 
tion) needed to provide a stipulated rate of return or, for a 
given price, determines the expected rate of return on 
investment. The rate of return used in this study is the 
discounted-cash-flow rate of return (DCFROR), most 
commonly defined as the rate of return that makes the 
present worth of cash flows from an investment equal to 
the present worth of all after-tax investment. For this 
study, a 15-pct DCFROR was considered necessary to 
cover the opportunity cost of capital. Rates of return 
(profit) required for continued production differ from 



operation to operation. However, for comparison purposes, 
each operation was analyzed at a 15-pct DCFROR. 
Analyses were also performed at a 0-pct DCFROR, which 
includes the return of invested capital but provides no 
additional profit. Total production cost at a 0-pct DCFROR 
is equivalent to a breakeven production cost. 

Detailed cash-flow analyses were generated for each 
deposit in this study. After each deposit's total cost of 
production was determined, individual deposit tonnages 
were aggregated at increasing production costs to deter- 
mine magnesium availability from all deposits evaluated. 
The results of these analyses are presented as availability 
curves discussed later in this report. Total and annual 
availability curves were generated for Mg metal, dead- 
burned MgO, and caustic calcined MgO. 

Sensitivity analyses showing effects of source mate- 
rial, energy costs, processing technology, and product type 
were also performed. 



GEOLOGY 



Magnesium occurs in a variety of rock types, sea 
water, bitterns, and brines. Although magnesium is found 
in over 60 minerals, only dolomite, magnesite, brucite, 
and olivine are magnesium minerals of commercial 
importance. Together, these varied sources form a 
potential resource base for magnesium that is for all 
practical purposes inexhaustible. 



DOLOMITE 

Sources of high-purity dolomite [CaMg(C0 3 ) 2 ], a 
sedimentary rock commonly interbedded with limestone, 
are enormous and contribute significantly to Mg metal 
and magnesium compound production. Dolomite occurs as 
massive or bedded deposits many meters in thickness. In 
the United States alone, dolomite deposits containing at 
least 37.5 pet MgC0 3 occur in at least a dozen States. 
World dolomite resources are sufficient to meet the 
expected demand for dolomite products well beyond the 
year 2000. 



SEAWATER 

Magnesium occurs within seawater as the cation of 
various magnesium salts (MgCl 2 , MgS0 4 , and MgBr 2 ). 
The magnesium content of seawater averages 0.13 wt pet. 
Concentrations in specific areas vary widely due to 
geomorphic, climatic, and seasonal conditions and to other 
variables such as water depth. Seawater plants are 
located at sites of relatively high salinity, reflecting 
higher than average concentrations of dissolved salts. 
U.S. operations extract MgO from sea brines that range 
from 0.13 to 0.22 pet Mg. The oceans are estimated to 
contain 17.8 billion st of pure magnesium; rivers have the 
potential to contribute an additional 30 MMst Mg (9). 



LAKE BRINES 



MAGNESITE AND BRUCITE 

Magnesite (MgC0 3 ), the natural form of magnesium 
carbonate, has been a traditional source of magnesium 
and magnesium compounds since the 1880's. Magnesite 
occurs in four types of deposits: As crystalline masses 
replacing dolomite, as impure crystalline masses replac- 
ing ultramafic rocks, as cryptocrystalline masses in 
ultramafic rocks, and as sedimentary beds and lenses. In 
recent years, only deposits of crystalline magnesite 
replacing dolomite have been mined. These crystalline 
magnesite deposits occur as lenses, stockworks, or 
disseminations within massive dolomite deposits. 

Brucite [Mg(OH) 2 ], the natural form of magnesium 
hydroxide, is a magnesium mineral of secondary origin 
that usually is found in association with other magnesium 
minerals, particularly magnesite. It is usually associated 
with carbonate rocks and serpentine. 



Lake brines commonly occur in enclosed drainage 
basins. Salt concentrations are controlled by several 
climactic factors. Abundant solar radiation, low humidity, 
and low rainfall result in more concentrated brines. In 
these areas, water loss through evaporation exceeds water 
gained through precipitation. The Dead Sea brines in 
Israel and the Great Salt Lake brines in the United States 
illustrate two types of natural brines. Rainfall in the Dead 
Sea area averages 33 in/yr and has been relatively stable 
for several years. Magnesium concentration is approx- 
imately 4.1 pet. The Great Salt Lake region has an 
average rainfall between 12 to 19 in/yr; rainfall distribu- 
tion has been variable. Both regions, however, have 
higher than average magnesium salt concentrations. 
Higher rainfall in the Great Salt Lake area, in combina- 
tion with flooding of the drainage basin as a result of a 
breeched causeway, has resulted in magnesium concen- 
trations that have fallen below an average level of 3.8 pet 
Mg, requiring processing technology modifications. 



11 



WELL BRINES 

Well brines are extracted from two sources. Wells are 
used to extract seawater that has invaded near-shore 
aquifers. An example of this is Quimica del Rey in Mexico. 
Production facilities of this type are very similar to typical 
seawate/ plants. The second source is naturally concen- 
trated interstitial brines. Two major theories are pre- 



sented for the origins of interstitial brines. The first 
explanation proposes that these brines are the residium of 
the formation of evaporite deposits. The second attributes 
brine concentration to the downward percolation of 
meteoric waters that take minerals into solution until 
saturation levels are reached (19). Magnesium concentra- 
tions in interstitial brines are higher than those of 
seawater, but lower than the best lake brines. 



MAGNESIUM RESOURCES 



Magnesium and magnesium compounds can be 
produced (if economics are not considered) from numerous 
sources in virtually unlimited quantities from many 
countries. Seawater, which averages 0.13 wt pet Mg, is 
virtually an inexhaustible source of magnesium. Conse- 
quently, it is not the purpose of this study to estimate the 
total resource potential of this abundant material, but 
rather to present the availability of magnesium and 
magnesium compounds in terms of the most readily 
available sources (e.g., those currently producing, those 
with recent production, and those not yet producing but 
with significant production potential) in MEC's. Resources 
have been classified into four primary sources: seawater, 
brines, magnesite, and dolomite. Discussion of dolomite 
sources is limited to those properties producing dolomite 
solely for its magnesium content, rather than for its 
numerous other uses. 

Resource estimates were made at the demonstrated 
level according to the mineral resource classification 
system developed by the Bureau of Mines and U.S. 
Geological Survey (fig. 4) (23). Using this classification 
system, demonstrated resources are defined as the in situ 



measured plus indicated tonnages that make up the 
reserve base. The reserve base includes resources that are 
currently economic (reserves) or marginally economic 
(marginal reserves) and some that are currently subeco- 
nomic (subeconomic resources). Resource quantity and 
grade were determined from site inspections, deposit 
geology, drilling data, mine workings, and sampling. 

Demonstrated resources from 38 properties with 
significant potential for recovery of magnesium or 
magnesium compounds from MEC's were evaluated in 
this study. Total demonstrated resources from these 
deposits are estimated at 29,407 MMst of source material 
containing 416 MMst MgO, of which 74 pet is recoverable 
as either MgO compounds or Mg metal. 

Table 7 reports magnesium resource potential from 
evaluated MEC's. The nature of the seawater and brine 
sources made it impossible to estimate resources attribut- 
able to individual properties in a conventional manner. 
Resources from properties recovering magnesium prod- 
ucts from brine or seawater sources were reported in 
terms of a 30-yr production life for the purpose of economic 
analysis. 



Cumulative 
production 



IDENTIFIED RESOURCES 



Demonstrated 



Measured 



Indicated 



Inferred 



ECONOMIC 



MARGINALLY 
ECONOMIC 



SUBECONOMIC 



Reserve 



base 



Inferred 

reserve 

base 



UNDISCOVERED RESOURCES 



Probability range 
(or) 



Hypothetical 



Speculative 



+ 
+ 



Other 
occurrences 



Includes nonconventional and low-grade materials 



FIGURE 4.— Mineral resource classification categories. 



12 



TABLE 7.— Demonstrated MEC magnesium resources, January 1985 



Demonstrated Identified 2 

Country and primary e . , , ln sit 3 u M 9° MgO, MMst ln situ MgO Contained 

cn,,rra Status 1 ore 3 , grade, ore, grade, MgO, 

source MMst pet Contained" Recoverable 5 MMst pet MMst 

Brazil: Magnesite P W 46 W W W 46 W 

Canada: 

Dolomite P 11 21 2.4 2.4 11 21 2.4 

Magnesite N 136 30 41 41 176 30 53 

Greece: Magnesite C W 6.4 W W W 6.4 W 

India: Magnesite P 334 9.5 32 2.2 1,583 9.8 155 

Ireland: Seawater C 2,473 .19 4.7 4.7 ( 7 ) .19 ( 7 ) 

Italy: Seawater P 1,031 .23 2.4 2.4 ( 7 ) 0.23 ( 7 ) 

Japan: Seawater P 17,007 .20 31 18 ( 7 ) 0.20 ( 7 ) 

Mexico: 

Seawater P 1,012 .20 2.0 2.0 ( 7 ) 4.5 ( 7 ) 

Brine P 1,128 4.5 51 51 ( 7 ) 4.5 ( 7 ) 

Netherlands: Brine P 29 9.0 2.6 2.6 59 9.0 5.3 

Norway: Seawater P 1,356 .20 2.7 2.7 ( 7 ) .20 ( 7 ) 

Spain: Magnesite P W 32 W W W 32 W 

Tunisia: Brine N 59 6.8 4.0 4.0 1,102 6.8 75 

Turkey: Magnesite P 437 27 118 49 1,105 26 287 

United Kingdom: Seawater P 1,936 0.21 4.0 4.0 3,287 .21 6.9 

United States: 

Seawater P 3,636 .21 7.6 5.1 ( 7 ) .21 ( 7 ) 

Brine P 1,880 1.2 23 23 ( 7 ) 1.2 ( 7 ) 

Magnesite C W 26 W W W 26 W 

Dolomite C W 39 W W W 39 W 

Total or average: 

Seawater NAp 28,451 .19-.23 54.4 38.9 ( 7 ) NAp ( 7 ) 

Brine NAp 3,096 1.2-9.0 80.6 80.6 ( 7 ) NAp ( 7 ) 

Magnesite NAp 1,499 6.4-46 285.0 165.7 3,600 NAp 636 

Dolomite NAp 24 21-39 7.5 7.5 24 NAp 7.5 

All sources NAp 33,070 NAp 427.5 292.7 ( 7 ) NAp ( 7 ) 

NAp Not applicable. 

W Withheld to avoid disclosing company proprietary data; included in totals. 
'C = combined producer and nonproducer; N = nonproducer: P = producer. 

identified resources include inferred resources; seawater and some brine resources are considered virtually unlimited. 
3 Resources for seawater and brines are effectively inexhaustible; for the purpose of this study a property life of 30 yr was assumed 
from these sources. 
"Figures report total MgO content of in situ ore. 

5 Figures report MgO recoverable from deposits in country assuming current recovery rates. 
6 CC = caustic calcined MgO; DB = deadburned MgO; MG = Mg metal. 
Principal products only, other products may be recovered in limited quantities. 
Unlimited resources. 



Annual 
production 

capacity, 
st product 


Product 
type 6 


330,000 


DB.CC 


11,000 
205,000 


MG 
DB.CC 


410,000 


DB 


133,000 


DB.CC 


200,000 


DB 


72,000 


DB 


691,000 


DB.CCMG 


77,000 
110,000 


DB 
DB.CC 


110,000 


DB 


55,000 


MG 


105,000 


DB.CC 


110,000 


DB 


205,000 


DB.CC 


193,000 


CC.DB 


468,000 

580,000 

123,000 

27,000 


DB 
DB 

DB.MG 
DB 


1 ,756,000 

910,000 

1,511,000 

38,000 

4,215,000 


NAp 
NAp 
NAp 
NAp 
NAp 



for estimates of resources 



Of the 38 properties evaluated, 13 properties recover 
magnesium primarily from seawater, 8 from well or lake 
brines, 15 from magnesite or brucite, and 2 from dolomite. 
Over the next 30 yr, demonstrated recoverable MgO from 
seawater sources evaluated in this study are estimated to 
be 46.9 MMst, or 15 pet of the total recoverable MgO 
evaluated in this study. Approximately 76.4 MMst (25 pet) 
MgO are recoverable from brines during this period. The 



MgO content of magnesite or brucite sources amount to 
175.2 MMst, or 57 pet of the total available MgO. 

Most of the countries of the world have the potential 
to recover magnesium from either seawater, brine, or 
dolomite. The principal magnesite-rich regions are in- 
cluded in table 6. Areas with magnesium recovery 
potential not included in this study are discussed in the 
appendix. 



13 



EXTRACTION AND PROCESSING TECHNOLOGY 



Magnesium and magnesium products are recovered 
from a variety of sources. Each source requires specialized 
mining tend processing methods, with method selection 
dependent upon the desired marketable form. 



SEAWATER AND BRINES 
Extraction 

The simplest source of magnesium to recover is 
seawater or magnesium-rich lake brines. Water is simply 
pumped from the shallow source area by means of 
centrifugal pumps. Pump intake is arranged in a series of 
weirs or sumps in order to prevent the pumps from being 
clogged with fish or other contaminants. 

The Barcroft operation in Delaware uses a slight 
variation of this method. Water is pumped by means of 
submersible well pumps with pump intakes located 3 in 
below the sediment surface. Sediment in this case acts as 
the filtering mechanism. 

Magnesium-rich natural brines such as those recov- 
ered from the Michigan Basin are extracted by means of 
deep wells. Extraction methods and equipment are similar 
to that used in the oil industry. Well fields are usually put 
into production by contract drilling firms on a "turnkey" 
basis. 

Michigan brine wells are sunk to depths ranging from 
4,000 to 5,200 ft. Well castings are cement-sealed from the 
surface to the top of the brine producing aquifer. Pumping 
rates range from 20 to 120 gal/min. Brines are transported 
to processing facilities by a network of steel or fiberglass 
pipelines. Similar brine recovery techniques are employed 
worldwide. 



The main consideration in selecting reactants for this 
process are their purity and economic availability. After 
the reactants have been selected, the limitations of 
pumping and thickening equipment prevent switching to 
more dilute reactants without loss of capacity. A plant 
using dolomite, for example, cannot change to limestone 
without suffering a production loss. Changing to a more 
concentrated reactant, however, may be possible. 

When dolomite is used as a reactant, approximately 
half of the resulting magnesium in the MgO product 
comes from the dolomite; when limestone is used, all the 
product MgO comes from the seawater or brine. In order to 
obtain an equivalent production rate in terms of market- 
able product, twice the volume of liquid must be processed 
when limestone is used than when dolomite is used. 

If a MgO product is desired, the filter cake is treated 
in either a multiple-hearth furnace or a rotary kiln and 
fired to a temperature of approximately 1,640° F (11). At 
this temperature, the water is driven from the Mg(OH) 2 , 
leaving caustic calcined MgO. This form of magnesia can 
be marketed or can be pelletized and refired in a rotary 
kiln. The kiln is fired up to a temperature above 2,640° F 
(11); the crystalline makeup of the MgO changes and 
deadburned MgO is formed. 

MgS0 4 (epsom salts) can be produced by dissolving 
MgO in H 2 S0 4 with subsequent crystallization, or by 
reacting Mg(OH) 2 with S0 2 . Various grades of MgC0 3 can 
be produced by combining solutions of MgS0 4 and Na 2 C0 3 
followed by precipitation, filtration, and drying (11). 



MAGNESITE, BRUCITE, DOLOMITE, AND OLIVINE 



Extraction 



Processing 

Processing methods employed are selected based upon 
source material type and product forms desired. Methods 
employed at specific operations are reported in table 6. 

Seawater or well-brines are processed similarly, but 
minor differences occur at the initial stages of processing. 
If the solutions are used as feed for producing caustic 
calcined or deadburned MgO, carbonate levels are first 
reduced so insoluble calcium compounds do not precipitate 
with Mg(OH) 2 in the subsequent reaction process. 

Brines are first combined with slaked lime to 
precipitate soluble bicarbonates as CaC0 3 , while seawa- 
ter is commonly treated with H 2 S0 4 to liberate C0 2 . 
Subsequent processing steps for these two sources are 
identical. The treated solution is then heated to approx- 
imately 131° F and placed into reaction vessels where 
calcined oyster shells, limestone, or dolomite are added. 
Magnesium ions in the water react with the slaked 
carbonates to produce a Mg(OH) 2 precipitate. This 
Mg(OH) 2 slurry is concentrated in thickeners, washed 
with fresh water in a countercurrent system, and then 
filtered. The resulting filter cake can either be dried and 
marketed at this point as Mg(OH) 2 or it can undergo 
further processing to attain another magnesium product. 



Magnesite, brucite, dolomite, and olivine are the 
principal rock sources of magnesium. Open pit mining 
methods are most commonly used. Mining consists of 
stripping overburden and drilling, blasting, loading, and 
hauling ore. Pit design is based on surface mapping and 
assay information derived from exploratory drilling. 

Waste and ore are commonly drilled by percussion or 
rotary drills. Holes are loaded with ANFO and primed 
with dynamite. Shovels and front-end loaders transport 
the broken ore to trucks for shipment to processing 
facilities. Hand cobbing of broken material is employed at 
some locations, primarily in India and Turkey. Crushers 
located in the pit are utilized at other locations. 

Overburden and waste removal varies significantly 
for each operation. Waste-to-ore ratios range from zero to 
as much as 3:1. Pit slopes for domestic operations are 
generally maintained at 60°. Pit benches can vary from 10 
to 40 ft. 

Nonmetallic MgO Processing 

Magnesium is recovered from mineralized areas 
containing magnesite, brucite, or dolomite. The first step 
in processing these ores is to crush either run-of-mine or 
hand-cobbed ore in multiple stages at either the mine site 
or the processing facilities. Dolomite at this point is 



14 



simply directed to rotary or shaft kilns where it is calcined 
to a temperature of 1,640° F. If deadburned dolomite is 
desired, the kilns are heated to temperatures up to 3,450° 
F (11). Magnesite and brucite ores undergo more rigorous 
beneficiation before calcination. After undergoing a series 
of crushing stages, ore is screened, washed, and classified 
to remove slimes. Depending upon ore quality, flotation or 
heavy-media separation may be required to prepare the 
feed for calcination. 

Two forms of magnesia are commonly produced, 
caustic calcined MgO or deadburned MgO. Caustic 
calcined MgO is obtained by heating the feed material in 
either rotary or shaft kilns to above 1,640° F. Deadburned 
material is produced by pelletizing and additional kilning 
at temperatures up to 3,450° F. In some cases, raw feed is 
mixed with flue dust and briquetted prior to deadburning. 
Both brick and maintenance grade refractory MgO 
products can be produced (11). 

Magnesium Metal Processing 

Two principal processes are currently utilized for Mg 
metal recovery: electrolytic reduction of MgCl 2 and 
thermic (silicothermic) reduction of MgO. Exact process 
methodology varies from operation to operation. 

Electrolytic Processing 

Several basic electrolytic cell designs are in use today; 
the three main cells currently employed are the Dow cell, 
the I.G. cell, and the diaphragmless cell. Detailed 
descriptions of cell design have been published (8). Cell 
design differs in electrode positioning and utilization of a 
diaphragm for separating the electrodes. In each cell 
direct current breaks down the MgCl 2 into chlorine gas 
and molten magnesium. The metal is formed at the 
cathode and rises to the surface of the bath where it is 
guided into storage wells. Metal is cast into desired forms. 
Chlorine and HC1 gases generated at the anodes are 
collected and pumped to other facilities for further 
treatment and use (10). 



Dow Process 

Raw materials for this process consist of seawater and 
dolomite. In this process, calcined dolomite is reacted with 
seawater to precipitate Mg(OH) 2 . The precipitate is 
neutralized with HC1 to produce MgCl 2 . This solution is 
partially dewatered to approximately 25 pet water and fed 
directly into Dow electrolytic cells. 



Norsk Hydro Process 

Raw materials for this process are also seawater and 
dolomite, or brines with a high MgCl 2 content. Norsk 
Hydro A/S employs two different preparation processes. In 
the original Norsk Hydro process, seawater and calcined 
dolomite are combined and the resultant Mg(OH) 2 
is precipitated and chlorinated as with the Dow process. In 
the revised Norsk Hydro process, MgCl 2 brine is totally 
dehydrated and chlorinated in fluidized beds. The Norsk 
Hydro process differs from the Dow process in that only 
fully dehydrated MgCl 2 is fed into the electrolytic cells, 
whereas the Dow process feed is MgCl 2 with a H 2 
content of 25 pet (10). Norsk Hydro A/S has until recently 
employed modified I.G. electrolytic cells, but is currently 
replacing them with diaphragmless cells of its own design. 

AMAX Process 

This process makes extensive use of solar evaporation 
to concentrate MgCl 2 from brine. The brines are pumped 
to a series of solar evaporation ponds where a 7.5 pet Mg 
concentrated brine is obtained. CaCl 2 is used to remove 
various sulfates from the brine, which is further concen- 
trated and dehydrated in a spray dryer. Anhydrous MgCl 2 
is melted and Mg metal separated in an I.G. electrolytic 
cell. 



Thermic Processing 

Magnetherm Process 

This process uses dolomite for the magnesium source 
and ferrosilicon as a reducing agent. It is the most widely 
used of the thermic processes. Calcined dolomite, ferrosili- 
con, and alumina are ground, heated, and briquetted, then 
fed into an electric furnace, which is operated under a 
vacuum at a temperature of 2,900° F. The alumina serves 
as a fluidizing agent in the process and reduces the 
melting point of the slag produced as the result of the 
dolomite-silicon reaction. Magnesium vapors are conden- 
sed, and Mg metal is then cast in desired forms. 

Pigeon Process 

Raw material used in this process is dolomite. 
Ferrosilicon is also used as a reducing agent. Dolomite 
and ferrosilicon are mixed, briquetted, and heated in a 
retort under vacuum to 2,000° F. The resulting chemical 
reaction produces magnesium vapor, which is condensed 
in a water-cooled condensing section of the retort. 



PRODUCTION COSTS 



Capital investments and operating costs for mining, 
milling, processing, and transportation were developed 
based on actual data or estimated from best available 
sources. Based upon this economic data, costs at 0- and 
15-pct DCFROR were generated for each property. The 
0-pct DCFROR cost estimate includes applicable mining, 
concentrating, and processing costs; transportation costs 
to the processing facility; capital recovery and taxes. The 



15-pct DCFROR cost also includes profit. Post-processing- 
plant transportation costs have been included as separate 
costs. 

Magnesium production costs vary greatly depending 
upon such factors as source material, processing metho- 
dology, size of operation, deposit location, ore characteris- 
tics, energy and labor costs, tax structure, and degree of 
product integration and diversification. The diversity of 



15 



source materials and marketed products available make 
economic comparisons between properties difficult. In this 
study, properties were grouped in terms of primary 
product and source material. 



CAPITAL INVESTMENTS 

Where applicable, capital investments include costs 
for exploration; development; mine, mill, and processing 
facilities and equipment; working capital; and infrastruc- 
ture. Because of differences in processing techniques, costs 
are reported by source material and final product. 

Capital costs reflect either development costs to 
construct "greenfield" facilities and begin production or 
the additional capital investment necessary to recondition 
preexisting facilities and construct any additional facili- 
ties necessary to enable a property to resume operations. 
Most of the magnesium operations under consideration 
have been operating for many years. Many of the original 
capital investments have been written off or depreciated. 
Capital investments for these operations are limited to 
replacement, modifications, or expansions, and do not 
reflect the total cost required for development of a new or 
"greenfield" operation. Costs have been reported in terms 
of investment dollars per short ton of annual product 
capacity. 

Investments made for producing operations evaluated 
in this study vary greatly depending on the type and 
degree of plant modification required. Much of the 
difference is attributed to the high degree of variation in 
the infrastructure required from property to property. A 
property located in a highly industrialized region requires 
significantly less infrastructure than one located in a 
remote region, where additional townsite, transportation, 
and port facilities may be required. Properties with larger 
production rates generally required larger capital expend- 
itures but were lower cost operations on a per ton of 
product basis. 

Capital costs associated with plants producing mag- 
nesium compounds vary significantly from those produc- 
ing Mg metal, although they may be of similar capacities 
and use similar raw materials. It is estimated that initial 
capital requirements for the production of Mg metal range 
from $3,175/st to $4,500/st of annual product capacity (15). 
Data available from this study indicates that initial 
capital investment for the production of MgO compounds 
(primarily deadburned MgO and caustic calcined MgO) 
fall within the range of $864/st to $l,250/st annual MgO 
production in 1984 dollars. 

As a general rule, seawater magnesia plants cost 
more to construct per ton of annual product capacity than 
do brine plants or those using a magnesite feed. Seawater 
plants generally utilize a more complex recovery process, 
particularly if multiple feed sources (e.g., seawater and 
dolomite or brine) are used, and use expensive water 
preparation equipment that treats huge volumes of 
relatively dilute seawater. The least costly operations are 
those using a magnesite feed and a simple process 
consisting of crushing, sizing, and calcination. This type of 
plant is also commonly a physically smaller plant for a 
given product capacity than a plant utilizing a seawater or 
brine source material. 



Capital costs for "greenfield" plants producing Mg 
metal vary depending upon local conditions, capacity, and 
processing technology. Electrolytic plants tend to operate 
at higher capacities than metallothermic plants with 
correspondingly higher initial capital investments. Ther- 
mic processes generally operate at capacities from 5,000 to 
33,000 st/yr Mg metal and incur slightly lower capital 
investment. Based upon Bureau data, the capital invest- 
ment as of 1984 for electrolytic plants with a capacity 
range of 33,000 to 77,000 st/yr Mg metal is approximately 
$3,600/st annual capacity; electrolytic plants with capaci- 
ties exceeding 77,000 st/yr Mg metal have capital 
investments of about $3,200/st. The capital investment of 
plants utilizing thermic processing averages $2,700/st 
annual capacity; capital costs are lower for operations 
purchasing ferrosilicon. 



OPERATING COSTS 

Operating costs estimated for each of the properties 
evaluated include all necessary costs for extraction, raw 
materials, processing, and transportation to processing 
facilities. Costs for mining, processing, or purchase of 
necessary raw materials such as dolomite or ferrosilicon 
have been included in the operating cost. Because of the 
diverse nature of magnesium recovery technology, costs 
for mining and beneficiation, if required, have been 
included in the total processing plant operating cost; only 
total operating costs are reported. Costs reflect the 
weighted-average expense of recovering all commodities 
considered in this study. All costs are as of January 1984. 
Because of the proprietary nature of the data, detailed cost 
data for each property could not be reported. 

A summary of estimated operating and total produc- 
tion costs from operations included in this study are given 
in table 8. Costs for both Mg metal and MgO compounds 
are reported in terms of cost per short ton of contained 
MgO for all magnesium products. Both cost ranges and 
weighted-average costs are reported. Total production 
costs include additional costs for capital recovery, taxes, 
selected byproduct credits, and a 15-pct DCFROR. Table 9 
gives a breakdown by percentage of total cost for major 
cost components. Labor costs range from 13 to 31 pet of the 
total operating cost. Energy costs range from 22 to 71 pet 
and in general reflect the greatest portion of operating 
cost. Costs for materials and supplies make up 6 to 49 pet 
while general-administrative costs range up to 10 pet of 
the total operating cost. Deadburned MgO recovery 
appears to be the most energy intensive. 

Operating costs for Mg metal from all sources range 
from $280/st to $2,07 1/st Mg metal product (wtd av of 
$l,018/st). While a breakdown of metal costs from various 
sources was not possible owing to the proprietary nature 
of the data, operating costs for seawater operations tended 
to be lower than those from dolomite or brine source 
material; operating costs from evaluated brine operations 
were the highest. 

Operating costs from evaluated properties producing 
magnesium compounds ranged from $22/st to $386/st 
product (wtd av of $172/st). Costs from seawater and 
magnesite properties were significantly higher than those 
from properties processing brines. 



16 



TABLE 8. — Production costs for selected producing 
operations from various source materials 

(Dollars per short ton contained MgO) 

Product and Operating cost 1 Total production cost 2 

source Range Wtd av Range Wtd av 

Mg metal 3 $280-$2,071 $1,018 $760-$2,620 $1,552 

MgO compounds: 

Seawater 129- 386 185 156- 476 276 

Brines 62- 255 131 148- 329 212 

Magnesite and brucite 22- 259 195 109- 451 287 

All sources NAp 172 NAp iiT 

NAp Not applicable. 

'Includes all mining, beneficiation, processing, and internal transportation 
costs. 

includes additional costs such as capital recovery, taxes, and a 15-pct 
DCFROR. Costs vary from those reported in table 10, as these costs reflect 
weighted-average cost in terms of contained MgO from all magnesium 
products; table 10 costs reflect costs in terms of primary magnesium product 
adjusted for byproduct credits. 

3 Owing to the proprietary nature of the data, no breakdown of Mg metal 
costs by source material was made. 



TABLE 9. — Operating cost breakdown for producing 
magnesium operations 

(Percent) 



Product and source 



Labor Energy 



Materials General 

and and 

supplies administrative 



Mg metal: 

Seawater 29 

Brine 29 

Dolomite 29 

Deadburned MgO: 

Seawater 25 

Brine 13 

Magnesite and brucite 18 

Caustic calcined MgO: 

Seawater 31 

Brine 15 

Magnesite and brucite 25 



39 
48 
22 



62 
58 
71 



37 
56 
59 



29 
18 

49 



6 

26 

9 



22 

21 

9 



10 
8 

7 



MAGNESIUM AVAILABILITY 



Capital and operating cost data were aggregated and 
economic analyses at 0-pct (breakeven) and 15-pct 
DCFROR were peformed for each of the products (Mg 
metal, deadburned MgO, and caustic calcined MgO) 
evaluated in this study. As defined earlier, the DCFROR 
represents the rate of return that makes the present worth 
of cash flows from an investment equal to the present 
worth of all after-tax investment. A summary of the 
economic findings is presented in table 10. Total produc- 
tion costs are reported as weighted averages in terms of 
cost per short ton of marketable product. Cost ranges for 
each product and source material type are given. All costs 
discussed here are reported in January 1984 dollars. 

Magnesium operations commonly produce a wide 
variety of magnesium products; byproduct credits for 
selected magnesium compounds (e.g., caustic MgO, 
Mg[OH] 2 , and raw magnesite) and other byproducts were 
included. Table 11 reports the byproduct prices used in the 
study. Specialty byproducts such as chlorine from Mg 
metal recovery were not included as they most commonly 
were considered a part of a separate recovery circuit in the 
fully integrated plant. 

For each deposit with multiple magnesium products, 
price proportions were used to burden costs against total 
revenues required to meet the target rate of return. The 
total production cost of the deposit is not allocated to only 
one product but is allocated among all products, based on 
relative price proportions of those products. This method 
is useful for operations for which there is not a clearly 
defined primary product. 

Nonmagnesium byproducts were given set prices (see 
table 11) and any byproduct credits were deducted from 
the total revenues required to cover all costs at 0-pct or 
15-pct DCFROR. The remaining revenues were then 
proportioned among all magnesium products recovered. 
Because of product similarity, the same market price 
proportions were assumed for all properties. Price 



proportions allow revenues to be divided between products 
according to their value, rather than establishing a price 
for one magnesium product and determining a price for 
another. 

TABLE 10. — Total production cost summary for selected 

magnesium products from producing operations and various 

source materials 

(Dollars per short ton primary product) 

Total production Weighted-average 

cost range total production cost 

Product and - - 

source 0-pct 15-pct 0-pct 15-pct 

DCFROR DCFROR DCFROR DCFROR 

Mg metal:' 400-2,400 760-2,620 1,346 1,552 

Deadburned MgO: 

Seawater 131- 407 156- 580 242 290 

Brines 157- 261 179- 329 178 237 

Magnesite and brucite 98- 339 118- 480 211 246 

Wtd av NAp NAp 213 257 

Caustic calcined MgO: 

Seawater 180- 286 191- 315 219 246 

Brine W W W W 

Magnesite and brucite 83- 285 100- 404 194 238 

Wtd av NAp NAp iijl 240 

NAp Not applicable. W Withheld to avoid disclosing proprietary data: 
included in totals. 

'The proprietary nature of the data prevents reporting of actual production 
costs for Mg metal. Weighted-average costs from all source materials are 
reported. 

TABLE 11.— Byproduct commodity prices, January 1984 

Price, $/st 

Caustic calcined MgO 315.00 

Deadburned MgO 392.00 

Gypsum 20.00 

Magnesite 48.54 

MgCI 2 58.06 

Mg(OH) 2 1 12.12 

Mg metal '1.34 

Talc 19.50 

'$/lb. 



17 



The total production cost can be compared to an 
estimated long-term market price to determine if an 
operation has sufficient return on investment to justify 
continuous operation. In the short term, if an operation 
shows average variable costs that are higher than the 
market price, the company may cease operations unless 
the cos£s arising from closure are higher than the cost of 
continuing production at a loss. State-owned or State- 
controlled operations may also continue production under 
a nonprofitable situation if the resulting foreign exchange 
earnings are more than foreign exchange costs incurred 
by the operation. A closure may require payment of 
unemployment, welfare, or loss of training benefits or 
additional costs to restart an operation. Governments may 
need sales revenues generated by the operation to import 
other needed materials into the country. 

The average total cost of production at a 15-pct 
DCFROR to produce Mg metal ranges from $0.38/lb to 
$1.31/lb Mg metal product (wtd av $0.78/lb Mg metal) for 
the properties under consideration. Given the proprietary 
nature of the data, actual costs could not be reported for 
each source material. On a relative basis, total production 
costs from seawater sources were lower than costs from 
dolomite or brine source materials; brine costs to recover 
Mg metal were the highest from the properties evaluated. 
All costs at a specified 15-pct DCFROR for the Mg metal 
operations under consideration are less than the January 
1984 market price for 99.8 pet pure Mg metal of $1.34/lb 
($2,680/st) Mg. (See table 2.) 

The variation in production costs among properties 
processing seawater, brines, and dolomite for recovery of 
Mg metal can be attributed to several factors. In the 
magnesium industry, the diversity of source material and 
processing methodology make economic comparisons 
among operations difficult. Variations in plant design and 
age, process technology, and capacity are significant. 
Seawater plants tend to operate at significantly higher 
capacities, resulting in economy-of-scale effects. The 
seawater plants also tend to be parts of larger industrial 
complexes where some cost elements may be absorbed by 
other parts of the complex. A significant advantage in 
electrical costs is possible with some large scale opera- 
tions. This may be reflected in table 9, which shows cost 
percentages reported for seawater and dolomite opera- 
tions producing Mg metal to be comparatively lower than 
those for brine operations. Energy requirements for each 
type of operation should be comparable (8). 

The average total cost (including a 15-pct DCFROR) 
to produce deadburned MgO ranges from $156/st to 
$580/st (wtd av of $290/st) from seawater, $179/st to 
$329/st (wtd av of $237/st) from brines, and $118/st to 
$480/st (wtd av of $246/st) from magnesite or brucite. The 
overall weighted-average production cost for deadburned 
MgO is $257/st. The January 1984 market price for 
deadburned MgO was $392/st MgO product. (See table 2.) 

The average total cost at 15-pct DCFROR to recover 
caustic calcined MgO as a primary product ranges from 
$191/st to $315/st (wtd av of $246/st) from seawater and 
$100/st to $404/st (wtd av of $238/st) from magnesite or 
brucite. The overall weighted-average production cost, 
including brine sources, is $240/st MgO product, well 
below the January 1984 market price of $315/st MgO 
product (table 2) for chemical-grade caustic calcined MgO. 

The wide variation in cost to recover MgO compounds 
also reflects variations in source material, capacity, plant 
age, and process technology. Recovery from seawater 
appears to be the most costly. Magnesium-rich brines are 



already partially concentrated, so preliminary concentra- 
tion required for seawater is unnecessary; consequently, 
brine costs are lower. Magnesite deposits require even less 
concentration owing to their high raw Mg content, but 
mining and beneficiation costs are higher. 

Costs to recover caustic calcined MgO as the primary 
recoverable MgO product average 93 pet of the costs to 
recover deadburned MgO as the primary product. This is 
to be expected where process technology is similar and 
only an additional processing step is required to produce 
the higher grade deadburned MgO product. 

Because of proprietary considerations, separate costs 
for producing and nonproducing properties could not be 
provided in most cases. Nonproducing properties evalu- 
ated in this study have costs that average 57 pet more 
than costs from producing properties recovering from a 
similar source material. 

Based upon these economic analyses, total and 
annual availability curves were generated for magnesium 
metal and selected MgO compounds to indicate magne- 
sium resource availability. These analyses are based on 
the following assumptions: 

1. Each operation is assumed to produce at its full 
design capacity. 

2. Competition and demand conditions are such that 
each operation will be able to sell all of its output at its 
anticipated average total cost of production. 

3. For nonproducing operations where no definite 
startup dates were known, preproduction development 
work for each property was assumed to begin in 1984. 

4. Time lags related to permitting, environmental 
impact statements, and other possible delays affecting 
production were minimized. 



TOTAL AVAILABILITY 

The total potential availability of selected mag- 
nesium products from properties included in this study is 
reported in the figures and tables included in this section. 
Both 0- and 15-pct DCFROR availability curves are 
reported; discussions are limited to the 15-pct DCFROR 
analysis. Of the 38 properties evaluated, 5 operations 
recover magnesium metal, 22 operations recover dead- 
burned MgO, and 11 operations recover caustic calcined 
MgO. 

The total availability of Mg metal is shown in figure 
5. The solid line represents the average total cost required 
over the assumed life of the operation to meet all costs at a 
breakeven, or pet, DCFROR. The broken line represents 
the average total cost of production including a 15-pct 
DCFROR on invested capital. The same relationship 
exists on figure 6, which shows the total availability of 
deadburned MgO and caustic calcined MgO. Similar data 
are reported for domestic deadburned MgO in figure 7. 
Tabulated availability data for these products at selected 
price ranges are reported in table 12. 

The January 1984 market price for Mg metal ingots 
was approximately $1.34/lb. Approximately 13 MMst Mg 
metal is potentially available at an average total cost 
equal to the reported market price. All properties included 
in this study incurred costs (including a 15-pct DCFROR) 
below the market price for Mg metal. 

The January 1984 market price for deadburned MgO 
was $392/st. Approximately 109 MMst deadburned MgO 
is potentially available from evaluated deposits which 



18 



«* 1.2 
oo 

O) 

*- 1.0 



c 

CO 



CO 
O 
O 



O 



.8 



KEY 

0-pctDCFROR 

15-pctDCFROR 



, J" 




± 



2 4 6 8 10 12 
RECOVERABLE Mg METAL, MMst 

FIGURE 5.— Total potential magnesium metal availability from evaluated MEC properties. 



14 



have production costs (including a 15-pct DCFROR) at or 
below this price. An additional 17 MMst would become 
available if the deadburned MgO price rose to $500/st (at a 
15-pct DCFROR). 

The January 1984 market price for caustic calcined 
MgO was $315/st. At that price, approximately 33 MMst 
MgO is potentially recoverable from evaluated deposits 
assuming a 15-pct DCFROR. An additional 9 MMst would 
become available if the caustic MgO price rose to $350/lb 
(assuming a 15-pct DCFROR). 

The domestic magnesium industry has the capability 
to produce approximately 9.6 MMst Mg metal and 33 
MMst deadburned MgO at the January 1984 market price 
for these products, assuming a 15-pct DCFROR. This 
equates to 73 pet of the Mg metal and 25 pet of the 
deadburned MgO potentially available from evaluated 
world deposits. This is well above the projected domestic 
consumption level for magnesium products until 2000. 
At the January 1984 market price, most domestic 
producers are profitable and achieving at least a 15-pct 
DCFROR. Resources are enormous so that, assuming no 
unforeseen changes in the magnesium industry, both 
domestic and MEC resources should continue to be 
adequate far into the future. 

Two important aspects of domestic magnesium com- 
pound availability should be noted. Some domestic 
properties produce a variety of low-grade magnesium 



compounds in addition to deadburned MgO. This study 
assumed, however, that all production occurred as 
deadburned MgO at a January 1984 market price of 
$392/st product. As a result, the actual margin of profit 
could be slightly lower than that indicated in the 
evaluation. Secondly, many of these operations are 
currently operating below their rated capacities, which 
would reduce their present profit margins. 



TABLE 12.— Availability of magnesium metal and MgO 

compounds from selected MEC properties including a 15-pct 

DCFROR at selected cost ranges 

(Thousand short tons) 



Total cost, $/st Mg metal 

Under 150 (5 

151 to 300 

301 to 400 

401 to 600 

601 to 1,000 2,523 

1 ,001 to 2,000 8,549 

2,000 to 2,700 2,210 

Total 13,282 

Market price' $/st 2,680 

1 As of January 1984; given for comparison. 



Deadburned Caustic 
MgO calcined MgO 



20,407 


14,210 


46,791 


18,895 


41 ,968 


9,241 


24,874 


327 


31 

















134,071 


42,673 


392 


315 



19 



CO 



e 

co 
O 
a 

< 

O 



800r- 

700- 
600- 
500- 
400- 
300- 
200- 
I0QH 



A, Deadburned MgO 

KEY 
0-pct DCFROR 



15-pct DCFROR 




80 



^.j 



r* 



ife" 



120^ 



140 



«wu 






1 - 




1 




~T™ 




400 


B, 


Caustic calcined MgO 








f- - 

i 
i 


350 
















i 
I 
j 




i 
i 






300 
250 


1 

. r 1 

— • 






i 


1 

1 

/ 


rJ 




- 


200 






— ^ 


— ^ 


150 


r 


j^ 


^^ 


4 


19 


24 


29 


34 




39 


44 



RECOVERABLE MgO, MMst 



FIGURE 6.— Total potential deadburned and caustic calcined MgO availability from evaluated MEC properties. 



20 



oo 



CO 
O 
O 

-J 
< 

o 



800 
700 
600 
500 
400 
300 
200- 



100 



KEY 

0-pct DCFROR 

15-pct DCFROR 



i — - 



-c f 



-P 



± 



± 



± 



10 15 20 25 30 
RECOVERABLE DEADBURNED MgO, MMst 

FIGURE 7. — Total potential domestic availability of dead burned MgO from evaluated properties. 



35 



ANNUAL AVAILABILITY 

Analyses were also performed to estimate the annual 
production potential of the magnesium properties evalu- 
ated in this study. Production potential for currently 
nonproducing deposits was based upon deposit size 
(demonstrated resources), past production history, and 
capacities of similar producing operations. Since the 
general approach of this study was to evaluate the 
properties at full production capacity over the next 30 yr, 
the annual curves present total potential availability for 
each year shown, rather than an assessment of future 
production. 

Figure 8 shows the potential annual availability for 
Mg metal, deadburned MgO, and caustic calcined MgO 
based on a 15-pct DCFROR. At a production cost of 
$1.40/lb (the January 1984 market price was $1.34/lb), 
approximately 301,000 st Mg metal are potentially 
available annually between the years 1986 to 2014. All of 
this was available from producing operations and com- 
pares with 268,000 st primary Mg metal produced in 1983 
(12). Based upon an anticipated growth in world magne- 
sium consumption at an annual rate of 3.6 pet for primary 
Mg metal and 0.95 pet for nonmetal magnesium, the 
forecasted world demand in 1990 is 350,000 st for primary 
Mg metal and 5,900,000 st for nonmetal magnesium; 
demand in 2000 is forecast as 490,000 st for primary Mg 
metal and 6,550,000 st for nonmetal magnesium products 
(11). A summary of anticipated demand is given in table 
13. 



Deposits evaluated in this study are sufficient to 
supply 80 pet of 1990 and 57 pet of 2000 consumption 
needs for Mg metal. Assuming no additions to demons- 
trated resources as defined in this study, requirements not 
met by the properties evaluated in this study could most 
likely be met by properties in CPEC's, by secondary 
magnesium producers, or properties currently being 
developed but not considered in this study because of the 
nature of the magnesium source material. 

Figure 8 shows that at a total production cost of 
$400/st (the January 1984 market price was $392/st, 
approximately 3.0 MMst deadburned MgO are available 
annually during the period 1987 to 2002. Approximately 
85 pet of this is available from current producers. By the 
end of 2008, production from deposits included in this 
study would decrease to 2.4 MMst for deadburned MgO 
annually at a maximum production cost of $400/st. As 
shown in figure 8, 430,000 st caustic calcined MgO is 
annually available at total operating costs below the 
January 1984 market price of $315/st. 

The forecasted world demand for all nonmetal 
magnesium compounds is 5.9 MMst contained Mg in 1990 
and 6.6 MMst contained Mg in 2000, based upon an 
anticipated annual growth rate of 0.95 pet for this period 
(11). Assuming deadburned and caustic calcined MgO 
constitute 56 pet of all MgO compounds (see figure 2), 
operations considered in this study could potentially meet 
approximately 63 pet of the 1990 and 56 pet of 2000 world 
consumption needs for total nonmetal magnesium from 
deadburned and caustic calcined MgO. In 1990, CPEC's 



21 



are anticipated to account for 37 pet of total world 
production (same as in 1984). The deposits considered in 
this study can supply approximately 102 pet of demand 
from MEC's in 1990 and 92 pet in 2000. This study only 
considered deadburned and caustic calcined MgO prod- 
ucts; a wide variety of other MgO compounds are 
produced.-' 



o 

2 



< 
o 



/' 



_ 250 
(0 

2 

_r 

< 200 

Ul 

2 



1 1 1 i r 

Magnesium price is in Jan. 1984 dollars per pound 



0-$l.40 



0-$l.20 



0-$0.80 



0-$0.40 



3.0 
2.5 
2.0 




1 1 1 1 r 

Deadburned MgO price is in Jan 1984 dollars per short ton 



„. \__o-ieoo 

■ __\ 0-J500 



\ 0-$4O0 



0-$300 



r 



"\ 0-$200 - 



600 




1984 



1989 



1994 



2004 2009 



FIGURE 8.— Annual availability of magnesium metal, dead- 
burned MgO, and caustic calcined MgO at various prices. 



TABLE 13.— Summary of domestic and foreign magnesium 
demand forecasts (11) 

(Thousand short tons contained magnesium) 





1983: 
Actual 


1990: 
Probable 




2000 






Probable 


Low 


High 


Domestic: 
Metal: 

Primary 

Secondary . . 
Nonmetal 


92 

25 

675 


120 

30 

700 


170 

40 

750 


90 

20 

500 


270 

70 

1,200 


Foreign: 

Metal 

Nonmetal 


176 
. 4,887 


230 
5,200 


320 
5,800 


180 
4,000 


600 
7,500 


World: 
Metal: 

Primary 

Secondary . . 
Nonmetal 


268 

25 

. 5,562 


350 

30 

5,900 


490 

40 

6,550 


270 

20 

4,500 


870 

70 

8,700 


Total 


. 5,855 


6,280 


7,080 


4,790 


9.640 



FACTORS AFFECTING AVAILABILITY 

Magnesium availability is significantly affected by 
energy costs. All magnesium producing processes are 
energy intensive. Because of rising energy costs in the 
early 1980's and the need to conserve the world's energy 
resources, producers in recent years have devoted much 
research effort to reducing the amount of energy required. 
These efforts are expected to continue in the near future. 
A comparison of energy requirements for processes 
commonly used to recover magnesium today is given in 
table 14. 

Energy related costs range from 22 to 71 pet of the 
total direct operating cost, depending upon processing 
technology and source material. Both metallic and 
nonmetallic magnesium processing is energy intensive. 
Figure 9 illustrates the degree to which the total 
operating cost is influenced by energy costs. Approximate- 
ly 52 pet of all magnesium plants evaluated have energy 
costs ranging from 40 to 60 pet of the total production cost. 
Most producers are striving to reduce energy consumption 
through technological improvements at every processing 
stage. 

The principal barrier to more widespread use of 
magnesium is its high price relative to aluminum, its 
principal industrial competitor. A magnesium price 
reduction of 10 pet could be sufficient for a widespread 
conversion of aluminum die and mold castings to 
magnesium (7). 



TABLE 14. — Energy requirements for magnesium metal 
production (8,15) 

Process KWh/lbMg 

Electrolytic: 
Dow: 

Old cells 47 

New cells 37 

Norsk Hydro: 

Old I.G. cells 29-31 

New cells 26-29 

AMAX: Modified I.G. cells 33-35 

Thermic: Magnatherm 33-37 



22 




20-30 31-40 41-50 51-60 61-70 

ENERGY COST, pet of total operating cost 



70 + 



FIGURE 9.— Energy costs as a percentage of total operating costs. 



CONCLUSIONS 



The magnesium industry appears to be stabilizing 
after a period of gradually increasing consumption. Since 
1980, demand has shown only a slight increase and prices 
for magnesium products have remained stable. Plants are 
either operating at reduced rates or are gradually 
resuming full production rates. Exploration or develop- 
ment work, halted for the past several years by the 
sluggish economy, is gradually being resumed at some 
locations. 

Magnesium is in an unusual position in that it has 
the capability of being recovered from multiple renewable 
sources from almost any country in the world. High costs 
and processing technology complexity have historically 
restricted industrial production to technically advanced 
areas, although development in less industrialized areas 
is beginning to occur. Magnesium resources have been 
denned for the next 30 yr. Over this period, properties 
considered in this study contain an estimated 416 MMst 
contained MgO, of which 74 pet is recoverable as either 
Mg metal or MgO compounds utilizing current technolo- 
gy. There are sufficient magnesium reserves currently 
developed to sustain present MEC production levels at 
least through the end of this century. Domestic reserves 
are also sufficient to meet anticipated domestic consump- 
tion needs until 2000. 

Production costs vary greatly depending upon loca- 
tion, source of raw material, age of property, processing 
methodology, and marketable product desired. Capital 
investments for the production of Mg metal range from 
$3,175/st to $4,500/st annual capacity, while capital 
requirements for refractory MgO production range from 
$816/st to $l,180/st annual capacity. Operating costs also 
vary significantly. Magnesium metal recovery from brines 
appears to be the most costly on a per ton basis, while costs 
to recover MgO appear to be highest from seawater 
operations. Energy costs account for a significant portion 



of processing costs; the magnesium industry is currently 
striving to reduce energy consumption to improve the 
market position of magnesium. 

Over 13 MMst Mg metal is available from evaluated 
MEC properties at or below a total cost of $1.34/lb Mg, the 
January 1984 market price of Mg metal. Approximately 
109 MMst deadburned MgO and 33 MMst caustic calcined 
MgO were available at or below the January 1984 market 
prices for those products. MEC operations considered in 
this study are sufficient to supply 80 pet of the projected 
1990 and 57 pet of 2000 world consumption needs for Mg 
metal. They could potentially meet approximately 63 pet 
of the projected 1990 and 56 pet of the 2000 world 
consumption needs for total nonmetal magnesium from 
deadburned and caustic MgO sources. 

Domestic operations have the capability to supply 9.6 
MMst Mg metal and 33 MMst deadburned MgO at the 
January 1984 market prices of these products, assuming a 
15-pct DCFROR. The total domestic material available 
over the next 30 yr is well above the projected cumulative 
domestic needs for these products. As of January 1984, all 
domestic producers appear to be profitable. The domestic 
magnesium resource should continue to be adequate. If 
energy costs remain a prime consideration, imports from 
countries with lower energy costs could compete with 
domestically produced magnesium products. U.S. domi- 
nance in magnesium markets could well depend on the 
domestic magnesium industry's ability to reduce energy 
costs to a competitive level. 

The CPEC's share of world magnesium markets in 
1984 amounted to 28 pet for magnesium metal and 61 pet 
for magnesite. These countries remain relatively un- 
affected by the recent recession in the Western World and 
have continued to increase magnesium production capa- 
bility at the expense of MEC production. Should current 
trends continue, the CPEC's share of world magnesium 
markets could be even greater in coming years. 



REFERENCES 



23 



1. Babitzke, H. R., A. F. Barsotti, J. S. Coffman, J. G. 
Thompson, and H. J. Bennett. The Bureau of Mines Minerals 
Availability System: An Update of Information Circular 8654. 
BuMines JC 8887, 1982, 54 pp. 

2. Chemical Marketing Reporter. Current Prices of Chemicals 
and Related Materials, v. 221-224, Jan. 1982-Jan. 1985. 

3. Clement, G. K., Jr., R. L. Miller, P. A. Seibert, L. Avery, and 
H. Bennett. Capital and Operating Cost Estimating System 
Manual for Mining and Beneficiation of Metallic and Nonmetallic 
Minerals Except Fossil Fuels in the United States and Canada. 
BuMines Spec. Publ., 1981, 149 pp. 

4. Comstock, H. B. Magnesium and Magnesium Compounds. 
BuMines IC 8201, 1963, 128 pp. 

5. Coope, B. M. Magnesia Markets — Refractory Contraction 
and Caustic Stagnation. Ind. Miner. (London), No. 191, 1983, 
pp. 57-87. 

6. Davidoff, R. L. Supply Analysis Model (SAM): A Minerals 
Availability System Methodology. BuMines IC 8820, 1980, 45 pp. 

7. Duncan, L. R., and W. H. McCracken. The Impact of Energy 
on Refractory Raw Materials. Ind. Miner. (London), No. 160, 
1981, pp. 19-22. 

8. Flemings, M. C, G. B. Kenney, D. R. Sadoway, J. P. Clark, 
and J. Szekely. An Assessment of Magnesium Primary Produc- 
tion Technology (Dep. Energy contract ACO1-76CS40284). MIT 
Press, 1981, 176 pp. 

9. Hill, M. N. (ed.). The Sea: Ideas and Observations on 
Progress in the Study of the Seas. Interscience Publ., 1963, p. 10. 

10. King, P. Magnesium, The International Perspective. Fin. 
Times Bus. Info., Ltd., London, 1983, 156 pp. 

11. Kramer, D. A. Magnesium. Ch. in Mineral Facts and 
Problems, 1985 Edition. BuMines B 675, 1985, pp. 471-482. 

12. Magnesium. BuMines Minerals Yearbook 

1984, v. 1, pp. 615-620. 



13. Magnesium Compounds. BuMines Minerals 

Yearbook 1984, v. 1, pp. 621-626. 

14. Magnesium Metal Sec. in BuMines Mineral 

Commodity Summaries 1985, pp. 92-93. 

15. Lea, D. Magnesium Extraction Processes Today. Light 
Met. Age, v. 40, No. 8, 1982, pp. 29-33. 

16. Logerot, J. M., and J. Moyen. Magnesium Production 
Methods — Raw Materials and Availability. Light Met. Age, v. 40, 
No. 12, 1982, pp. 27-30. 

17. Metal Bulletin Monthly. Costs of Magnesium vs Alumi- 
num. No. 97, 1979, pp. 23-26. 

18. Mikami, H. M. Refractory Magnesia. Pres. at Conf. for Raw 
Materials for Refractories (Tuscaloosa, AL, Feb. 8-9, 1982), 40 
pp,; available on request from D. R. Wilburn, BuMines, Denver, 
CO. 

19. Raymond Kaiser Engineers, Inc. Development of En- 
gineering and Cost Data for Foreign Magnesium Properties 
(contract JO225016). BuMines OFR 84-86, 1985, 32 pp.; NTIS PB 
86-236700. 

20. Schmid, I. H. China — the Magnesite Giant. Ind. Miner. 
(London), No. 203, 1984, pp. 27-45. 

21. Sorenson, H. O., and R. T. Segall. Natural Brines of the 
Detroit River Group, Michigan Basin. Sec. in Fourth Symposium 
on Salt, ed. by A. H. Coogan. North. OH Geol. Soc, Inc., 
Cleveland, OH, v. 1, 1973, pp. 91-99. 

22. U.S. Bureau of Mines. Minerals Yearbooks 1960-83. 
Chapters on Magnesium and Magnesium Compounds. 

23. U.S. Bureau of Mines and U.S. Geological Survey. 
Principles of a Resource/Reserve Classification for Minerals. U.S. 
Geol. Surv. Circ. 831, 1980, 5 pp. 

24. Wicken, O. M., and L. R. Duncan. Magnesite and Related 
Minerals. Ch. in Industrial Minerals and Rocks, ed. by S. J. 
Lefond. AIME, 4th ed., 1975, pp. 805-820. 



24 



APPENDIX.— AREAS AND SOURCE MATERIALS EXCLUDED FROM THIS STUDY 



Magnesium or magnesium compounds may be recov- 
ered from numerous sources throughout the world, some 
of which have not been included in this study owing to 
lack of available or reliable information. Potential sources 
excluded from this report are summarized below. Discus- 
sions include the nature of the source material, production 
status as of 1984, and any available reserve-resource data. 
Resource material discussed below would most likely be 
classified as identified resources. 

Magnesium production from olivine deposits is 
approximately 440,000 st/yr. The principal producing 
countries are Norway, Sweden, Australia, and the United 
States. Domestic olivine reserves are estimated at 230 
MMst, averaging 48 pet MgO, from North Carolina and 
Georgia and 55 MMst from Washington. While limited 
quantities of processed olivine are used in refractories, its 
principle use is in heat storage blocks (24). 



AUSTRIA 

Austria produces a range of refractory and caustic 
MgO products from both domestic high-iron breunnerite 
deposits and imported MgO. The magnesium industry in 
Austria has two main producers, Magnesia AG (Switzer- 
land) and Osterreichisch-Amerikanische Magnesit AG 
(OAMAG). Two other companies produce magnesite, but 
Magnesia AG owns a majority share of Magindag AG and 
OAMAG owns Tiroler Magnesit AG. These companies 
currently operate five mines with a total production of 
approximately 1,100,000 st/yr raw magnesite. The bulk of 
magnesite production is destined for export. 



ISRAEL 

Magnesium production from Israel comes mainly 
from the Dead Sea Periclase Ltd. project, which produces 
MgO from MgCl 2 -rich brines. At present, a unique 
thermal decomposition process is employed at this 
operation to recover both deadburned and calcined MgO 
products. An expansion from the current 44,000 st/yr 
product capacity is currently ongoing and scheduled for 
completion in 1987. 

NEPAL 

The Kharidunga magnesite deposit in Nepal is 
currently being developed to recover 55,000 st/yr dead- 
burned MgO. The project is managed by Nepal Orind 
Magnesite Ltd., a joint venture of the Nepal Government 
and Orissa Mining Corp. of India. Startup is scheduled for 
1987 (5). 

NORTH KOREA 

North Korea is reported to have sizable magnesite 
deposits with demonstrated reserves of over 900 MMst 
contained Mg (11). Current production is estimated at 2.0 
MMst/yr raw magnesite, although recent reports suggest 
that a major expansion program is in progress. North 
Korea has a present production capacity of 660,000 st/yr 
deadburned MgO. Detailed economic data are not avail- 
able. 



REPUBLIC OF SOUTH AFRICA 



CHINA 

China is one of the world's largest producers of 
natural magnesite, based upon the huge reserves of the 
Liaoning deposits in northeastern China. Over 2 billion st 
macrocrystalline magnesite have been defined, and over 
30 billion st magnesite are possible from the province (20). 
At present three large open-cast mines are in operation 
and provide feed for production of 770,000 st/yr dead- 
burned MgO and 330,000 st/yr caustic calcined MgO. The 
high-quality magnesite can yield grades of 95 to 98 pet 
MgO; however, because of inefficient calcining techniques 
and the use of high-ash coke, production of high-grade 
products to date has been limited. China is currently 
developing modern technology to produce a full range of 
high-quality metal and nonmetallic magnesium products. 
Lack of detailed data prevented inclusion of this area in 
this study. 



The Republic of South Africa has produced refractory 
magnesia products from natural magnesite deposits. At 
present, the only producing operation is the Vereeniging 
Refractories Ltd. mine at Burgersfort, Transvaal, which 
produces 38,000 st/yr deadburned MgO. Future plans call 
for the development of a seawater magnesia plant by a 
new processing technique developed by Anglovaal Ltd. 
Preliminary studies are underway. 



U.S.S.R. 

The U.S.S.R. produces both Mg metal and magnesium 
compounds from its magnesite deposits and from seawa- 
ter. The magnesium industry is reported to be expanding 
rapidly in the U.S.S.R. with current production capacity 
exceeding 770,000 st/yr deadburned and caustic MgO and 
91,000 st/yr Mg metal (11). 



*U.S. Government Printing Office : 1986 -168-969/51027 




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